Arcadia buys Chiorino Technology

Alessia Argentieri
01 March 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

Arcadia has wholly acquired Chiorino Technology, an Italian company specialising in leather tanning and manufacturing for the fashion industry, for an undisclosed amount.

The GP did not leverage the acquisition. The fresh capital will be used to help the business grow organically through continued product development.

Following the deal, Arcadia manager Marco Toscano will take up the role of CEO at Chiorino, and Arcadia business partner Paolo Opromolla will become president, while Chiorino product development manager Anna Perotto will join the executive board, supporting the new management team by ensuring continuity of the business strategy.

Arcadia told Unquote that it was attracted to the innovation and advanced technology used by the company and to its high-growth potential, especially within the leather goods market where it expects exponential growth in the coming years.

The private equity firm is deploying capital from its Arcadia Small Cap II fund. Launched with a €100m target in September 2016, the fund held a €47m first close in October 2017 and a €63m second closing in December 2017. Chiorino represents the first investment made by the firm through the fund, which aims to acquire majority stakes in eight companies with revenues between €10-50m, mainly based in the north of Italy. According to the firm, the fund is expected to reach a final close in July 2018.

Company
Founded in 2005 as a spin-out from leather belts producer Chiorino, and based in Biella, near Turin, Chiorino Technology specialises in leather tanning and manufacturing for the fashion, furniture and automotive industries. The company's clients comprise Italian and international fashion brands, including Armani, Gucci, Ferragamo, Burberry, Yves Saint-Laurent, Michael Kors and Mont Blanc. In 2017, it posted an EBITDA margin of 13%, equating to an EBITDA of approximately €3.9m from revenues of €30m, up 20% on 2016. The company employs 61 staff.

People
Arcadia – Simone Arnaboldi (CEO, co-founder); Guido Belli (chairman, co-founder).
Chiorino Technology – Anna Perotto (product development manager).

Advisers
Equity – Studio Legale Pavia e Ansaldo (legal); Leoni Corporate Advisors (corporate due diligence); Deloitte (financial due diligence); Sicor Service (tax).
Company – Studio Legale Vita Samory (legal); K Finance (financial due diligence).